Asked 3w ago
Everyone wants to FIRE, but wondering if there are any misconceptions about the retirement life? One thing I remember seeing is that retirement is not like vacation.
The 4% rule is based on past historical data that involves bond super long cycle and it is only for 30 years. With FIRE, you live out of your investment for minimum 40-50 years. Yet they use 30 years assumption. It works only in the US market, there is NO market in Asia that can sustain 4% rule, not even STI.
Now that stocks recently has outstanding return, the creator of 4% rule itself has changed / revised the 4% rule in to higher %. But i personally disagree, stock has mean reversion in the long run, so expected return in the long future cant be as outstanding as the last decade.
But in conclusion, I am just very amazed that people can advocate early retirement based on rule of thumb.
Hmm, I guess the duration that it takes to actually achieve FIRE! Many people assume, "If I just save a lot and invest aggressively, I'll be able to FIRE in x amount of years". In reality, many things could happen that can set your timeline back by a couple of months to even a year or 2. I think the most important thing about achieving FIRE is to understand why you want to achieve it. This will serve as great motivation when things get rough and you hit setbacks!
For myself personally, I wanna achieve FIRE so I can do the things I enjoy doing be it coding, investing in new Start-Ups, or even starting one myself!
I agree! I think the misconception that people have is if you FIRE, you can do nothing...
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